Saturday, October 11, 2008

The Depression of 1870

This crisis is more like the Panic and Depression of 1870 than 1929. The question that will soon be posed politically is: Will we come out of this, with policies that further underscore income inequality and asset value, like the gilded age that followed 1870 or a more equitable, balanced and productive recovery like the 1940's. This question can only be addressed by the next president and Congress and their mutual willingness to take on the Federal Reserve and global central banking, which are both gaining more power by the day though their own policies created both the 1929 crash (monetary policy restriction) and the 2008 crash (monetary policy expansion and failure to regulate excess).

See here and here for historic analogy to 1870.

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